Ease of Doing Business for MSMEs: Online procurement of goods on the government’s digital marketplace, Government e-Marketplace (GeM) by defence services and organisations below the Ministry of Defence grew 72 per cent by finish of December FY21 from about the year-ago period, according to Defence Secretary Ajay Kumar. “Defence Services & organizations are adopting Government eMarketplace in their procurements rapidly. 72% growth in 2020-21 over 2019-20,” stated Kumar sharing information on microblogging internet site Twitter. From goods procured worth Rs 1,406 crore as of November 30, 2019, the order worth grew to Rs 2,425 crore, as per information shared on New Year’s Day. The all round procurement by defence organisations and departments for FY20 stood at Rs 2,810 crore.
Importantly, the greatest jump in defence procurement was recorded amongst FY18 and FY19 with order worth witnessing a huge improve of 210 per cent from Rs 555 crore worth goods bought on the GeM platform to Rs 1,725 crore for the duration of the stated period. Launched on August 9, 2016, to boost speed and transparency in the government acquiring method to advantage little corporations, the marketplace saw procurement of defence-connected goods worth Rs 19 crore for the duration of FY17.
TheSpuzz Online had in December reported the all round transaction worth on GeM crossing Rs 74,552 crore as of December 30, 2020. The marketplace had 17.6 lakh listed items, 9 lakh sellers and service providers, and 11,543 item categories. The quantity of micro and little sellers on the GeM platform had crossed the 1.5 lakh mark in November final year – up 158 per cent from about 60,000 in November 2019 with 57.50 per cent share in total order worth. As of January 12, 2021, 4.1 lakh sellers have been MSEs out of 9.44 lakh total sellers on the GeM platform.
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In July 2020, the government had stated that MSMEs will be prime-tier vendors in the procurement of defence gear by the government from the sector for Rs 31,130 crore authorized by Defence Acquisition Council (DAC) on July 2, 2020. DAC in its meeting headed by Defence Minister Rajnath Singh had authorized proposals worth about Rs 38,900 crore for “capital acquisition of various platforms and equipment required by the Indian Armed Forced.”
The quantity of MSMEs in the domestic defence production sector had improved 21 per cent till Q2 FY20 from the complete FY19, according to the information shared by the MSME Minister Nitin Gadkari in Rajya Sabha in March final year. The quantity of MSME vendors of Defence Public Sector Enterprises/Ordnance Factory Board stood at 7,591 MSME vendors in FY18. This had improved to 8,643 vendors in FY19 and additional to 10,506 till Q2 FY20.